Assets that pass on free of Inheritance Tax
Inheritance Tax reliefs allow some assets to be passed on free of Inheritance Tax or with a reduced bill.
Topic: Uncategorized
Gifts
Small gifts that don’t create an Inheritance Tax liability
HM Revenue & Customs allows you to make a number of small gifts each year without creating an Inheritance Tax liability. Remember, each person has their own allowance, so the amount can be doubled if each spouse or registered civil partner uses their allowances.
Paying Inheritance Tax
Estimating how much liability you could leave behind for your loved ones
Usually the ‘executor’ of the will or the ‘administrator’ of the estate pays Inheritance Tax using funds from the estate.
Reducing a potential Inheritance Tax bill
Legitimate ways in which the 40% tax can be avoided
With careful planning and professional financial advice, it is possible to take preventative action to either reduce your beneficiaries’ potential Inheritance Tax bill or mitigate it out altogether.
Death and taxes
No longer a tax that only the richest people in society have to face
As Benjamin Franklin said, the only things that are certain in life are death and taxes, and Inheritance Tax touches on both of them. When you die, the Government assesses how much your estate is worth and then deducts your debts from this to obtain the value of your estate.
Buy-to-let and second homes
Higher stamp duty payable from April 2016
Buy-to-let landlords and people buying second homes from April this year will have to pay a
3% surcharge on the stamp duty charged for the property.
